Interest rates

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Illustration of the European Central Bank raising interest rates, featuring the ECB building and economic charts.
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ECB raises key interest rate to 2.25 percent

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The European Central Bank raised its key interest rate to 2.25 percent on June 11, 2026. It is the first hike since 2023. The ECB also lowered its growth forecast for the eurozone.

Global financial markets reacted on Monday to renewed surges in oil prices and geopolitical tensions in the Middle East, continuing the economic ripple effects first seen after the Iran conflict and Hormuz blockade earlier this year.

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Finance Minister Elisabeth Svantesson (M) directs sharp criticism at the major banks for not lowering variable mortgage rates despite falling market rates after earlier hikes. Only SEB has made a minor reduction so far.

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